Ares Management Corporation has completed the €900m (£785m) sale of its stake in a 40-asset pan-European logistics portfolio to its joint venture partner Investec Property Fund.
The portfolio, amassed through 12 separate deals over two years, comprises more than 1m sq ft of floorspace. The properties are generally mid-sized and located near airports, ports, and population centres in the major logistics corridors of six European countries, including Germany, France, and the Netherlands. Since aggregating the portfolio, the joint venture improved occupancy levels to 99% and extended average lease terms.
“In embarking on this aggregation strategy, our objective was to build a scaled portfolio of well-located, income-generating logistics assets with clear value-add potential across Europe’s major logistics corridors,” said Wilson Lamont, partner and co-head of European real estate equity at Ares. “During our two years of ownership, we built a strong relationship with the principals of Investec Property Fund and together we were able to drive full occupancy, extend lease terms, and mark rents to market, creating value across the portfolio while simultaneously developing approximately 36,500 sq m on surplus land. ”
Investec said that taking full ownership of the portfolio provided it with “a unique opportunity to execute on our intended strategy to deploy capital into portfolios that have a demonstrated track record, and are capturing growth stemming from positive underlying property fundamentals.”
JLL advised on the sale.
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